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We purchased a house in 2004.
My wife's salary is significantly higher than mine. So we decided to register the house in her name since she would be eligible for a higher loan.
We borrowed Rs 50 lakh (Rs 5 million) from a bank and are paying an Equated Monthly Installment close to Rs 43,000.
Now we realise that only my wife can avail of the tax benefit. Though I am the co-applicant, I am not a co-owner. So I am unable to avail of any tax benefits.
Under these circumstances, is it possible to legally get part ownership of the property in my name so that I too can enjoy the tax benefits? Will the bank accept it?
- Sharath
You are right. Only owners or co-owners are eligible to get any tax benefits in respect of repayment on a loan taken to acquire a house property.
It is possible to get a part ownership from your wife, but you will need to pay stamp duty for purchasing a share of this property.
Also, your bank should agree to this -- which it normally will do since you are anyway a co-applicant for the loan.
Read Joint home loans and tax benefits.
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